What are potential consequences of ineffective program risk management?

Ineffective program risk management can lead to a greater likelihood of project failures and cost overruns. When potential risks are not identified or adequately addressed, it creates an environment where unforeseen challenges can arise, often resulting in detrimental impacts on project scope, schedule, and budget. For instance, without proper risk management practices in place, a team may not anticipate delays due to regulatory changes or unexpected resource shortages. As a result, projects can exceed their budgets or fail to meet deadlines, leading to increased costs and wasted resources. Overall, neglecting effective risk management strategies heightens the vulnerability of projects to various adverse scenarios, thereby compromising their success.